Fleet Mortgages has announced a reduction in rates for its five-year fixed mortgage products.
- The new rates apply to standard, limited company, and multi-unit block mortgages.
- Rates have decreased from 5.29% to 5.14%, and from 5.69% to 5.54% for certain products.
- The changes are expected to help with affordability and investment opportunities for landlords.
- Chief Commercial Officer Steve Cox highlighted the potential benefits amidst a turbulent rate environment.
Fleet Mortgages has undertaken a notable adjustment in its financial offerings by reducing the rates on several of its five-year fixed-rate products. This announcement, made effective as of 19th November 2024, reflects a strategic move in the ever-volatile mortgage market. Targeting standard, limited company, and HMO/multi-unit block fixed-rate products, the new rates are set at 5.14%, previously 5.29%, and 5.54%, previously 5.69%, respectively, for a 75% loan-to-value proposition and a 3% fee.
Such reductions are anticipated to provide considerable relief to borrowers, particularly those engaged in remortgaging existing properties or entering new purchases. Steve Cox, Fleet Mortgages’ Chief Commercial Officer, provided insights into the strategic nature of this rate cut. He noted that despite a turbulent atmosphere in the swap markets, Fleet Mortgages’ funding model allowed them to offer competitive pricing adjustments. This move diverges from the broader trends observed in the buy-to-let market, providing potential benefits for landlords.
Cox’s commentary suggests that despite uncertainties introduced by the recent Budget’s stamp duty changes, landlords show resilience and pragmatism. The fundamental demand and supply imbalances in the private rental sector continue to offer promising yields and profitability prospects for landlords, particularly those considering expanding their portfolios under the new rate conditions. Property investment, with the right pricing, remains a viable asset class, delivering long-term rewards. The accessibility of these newly adjusted rates to standard, limited company, and HMO/MUB landlords underscores the potential for increased affordability within this investor segment.
This rate reduction by Fleet Mortgages is poised to enhance affordability and investment prospects for landlords.
